Lending to charities and social enterprises from social banks and other community development finance institutions (CDFIs) fell by almost £100m in the year to March 2013, according to a recent report.

There 53 CDFIs in the UK, which lend to individuals, businesses and charities in underserved markets. By far the largest CDFIs are two social banks, Triodos and Charity Bank, which lend mainly to charities and social enterprises. Most other CDFIs lending is to businesses and individuals.

Inside Community Finance, published by the Community Development Finance Association (CDFA), the umbrella body for CDFIs, said that in the year to March 2012, CDFIs lent £200m, of which £145m went to social sector organisations. However in the year to March 2013, this fell to £123m, with £48m going to social sector organisations.

The CDFA report said the change in total lending was down to a drop in funding for social ventures from social banks. It said this was likely to be a one-off event down to “restructuring” at the two banks.

Charity Bank’s lending last year was affected by a need to give up its charitable status after changes in the rules governing lenders, but Triodos said it there had been no major changes in its lending to social ventures.

“When social bank lending and other time-limited investments are excluded from lending figures, it reveals a different picture of CDFI activity,” the report said.

It said loans from the remaining CDFIs increased by 37 per cent to £88m, compared to £64m in the previous year.

The CDFA said their members had been able to access new government funds for lending to small businesses through the New Enterprise Allowance and Start Up Loans programmes. CDFIs also received a new source of funding late in the year from the Regional Growth Fund.

The CDFA expects to see further growth in lending next year as more CDFIs access these new sources of government funds.